Essential Insights for Homebuyers and Finding the Lowest Home Loan Interest Rate
Stamp duty is a major part of property purchase in Uttar Pradesh. Property purchasers in UP should pay their registration and stamp duty to get their names added to the government’s database.
In simple words, stamp duty is a tax paid to perform real estate transaction. It works as verification for state government’s property records. As per the Indian Postal Law 1909, Section 3, stamp duty is due. However, the rate of stamp duty may differ depending on the area.
It is essential to pay stamp duty in UP as prescribed by the UP government while registering a property. As per the UP Registration Act 1908 under Section 17, transactions involving real estate in Uttar Pradesh costing over INR 100 should be recorded at the sub-registrar office. Stamp duty helps to establish the purchaser as the owner of the property and registers the asset in their name.
Factors affecting stamp duty in UP
- Property bought by a man and woman is charged with 6.5% stamp duty
- Property bought by two men is charged at a stamp duty rate of 7%
- Property bought by two women is charged at a rate of 6% stamp duty
- Single female purchasers are charged 6% stamp duty
- Single male purchasers are charged 7% stamp duty
The registration cost remains 1% on all the above situations.
Stamp duty calculator
Often lending companies and bank offer a property loan emi calculator. It helps you calculate the stamp duty on a particular property in a state within seconds.
- Open the stamp duty calculator online.
- Choose the relevant state, territory such as Cantonment, Gram Panchayat or Municipal Corporation
- Enter the value of the property
- The screen will give you stamp duty according to the circle rate.
Once you get the exact stamp duty in UP, you can make the payment online.
Very often people are unable to purchase the property with a wholesome amount. They choose to go for home loan. It is important to look for a good lowest home loan interest rate for yourself for a reasonably long tenure so that you can easily pay the monthly installments on time, without any hassle.
Home loan interest rates
Now that you’re clear about the stamp duty rates in UP, and you look forward to purchasing a property, you should read on. If you worry about the lump sum amount that you need to get your dream home, then don’t worry. You can easily buy a home without burning a hole in your pocket by going for housing loans.
With extended repayment tenure, borrowers can reduce their EMIs. Of course, a high EMI will affect your fiscal stability and overall expenses if left unplanned. Hence, here are tips to help you choose lowest home loan interest rate.
Know all about housing loan interest rates
Knowing everything about housing loan interest rates is important when you are applying for a home loan. The interest rates majorly affect the overall pricing of your house. As home loans are basically of high price and are repaid in longer period, even a small difference in the rate of interest can cause major impact on your finances, especially in the long run.
Tips to find the lowest home loan interest rates
- Choose short tenure for lower interest
When choosing a home loan, the term is a major factor impacting your interest. While longer period may reduce your EMIs, shorter tenure such as 10 or 12 years can reduce the overall interest amount. Use a home loan calculator to check and compare the different interest rates for loan for shorter and longer terms before applying for a loan.
- Prepay to reduce your interest
If you’re going for floating-rate loans, lenders don’t charge prepayment fees. Also, making foreclosure fees is a good way to lower the principal sum and overall interest. Check your prepayment fees with your bank and determine what you have pay.
- Rate comparison
Before choosing a loan or lender, research different loan options and compare the interest rates. Use reliable websites and official bank websites to get a detailed knowledge of the fees and rates charged by different banks.
- Consider balance transfer
If you think that your present lender charges a higher rate of interest, you can transfer the due principal amount to another bank offering a reduced rate of interest.
